BM1707

Answer the questions after reading the passages.

1. Mario is engaged in a pharmaceutical business. One day, Mario unnecessarily

bought from Dario a truckload of supplies and medicines to be sold in his pharmacy
so that he could post the cost in his ledger as expense to reduce his tax liability. Is
the contract of sale between Mario and Dario valid? Why or why not?

- A Contract of Sale that happen is an agreement between a Mario the buyer and Dario the
seller of supplies and medicine, whereby the Dario agrees to deliver the supplies and
medicine to Mario for a certain price which Mario agrees to pay for it. In contracts like this,
when the buyer pays and the seller delivers, the transfer of ownership of goods is also done
at the same time.

For me the validity is in between yes and not, because when the Civil Code defines
the contract as a meeting of minds between two persons wherein Mario binds himself to
Dario with the respect of each other, Dario renders some service and sale of truck full of
supplies and medicine for Mario’s pharmacy.

When selling other types of medicine for pharmaceutical business, a contract is required
to be put in writing, in case there are unexpected things that happen such as expired
drugs or counterfeit drugs mixed in with it, you will be presented with a contract that
proves that the drugs displayed at the pharmacy came from Dario. But if it is an oral
contract, it can be enforced as a binding agreement. therefore, an agreement between
them is creating a mutual obligation that is also enforceable by law.

2. Joanna entered a loan contract with Marie over Marie’s car where Joanna is the
borrower and Marie is the lender. It was stated in the contract that the ownership
will be transferred to Joanna. The title to the car was given to Joanna who
registered the car in her name. Before the end date of the contract, Joanna
expressed her intention to buy the car. But Marie refused to agree to Joanna’s
intent. Was Marie correct in refusing to agree to Joanna’s intent? Why or why not?

- Yes, their contract of loan is a contract between a Joanna as borrower and Marie as lender
which regulates the mutual promises made by each of them that written on the contract. It
was stated in their contract that the ownership will be transferred to Joanna and the title to
the car was given to Joanna who registered the car in her name.it means that Joanna is the
owner of the car but he sign for the loan contract and not in contract for sale, it means
Marie has any right to refuse to Joanna’s intent because she agreed on the written contract
is contract of loan and Marie is the lender therefor she has his right to refuse it. loaning a
car comes with a variety of benefits, including a minimal down payment and typically lower
monthly car payments than with an auto loan. As a bonus, you get to drive a shiny new car
until you fully paid for it.

And as a borrower, it is important to be aware of the following responsibilities Signing the

any contract or note means you agree in contract and you’re obligated to the agreement
between you as a borrower or lender specially in contract of the loan.

3.

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3. Scott requested Jenny to work with the Bureau of Internal Revenue (BIR) in
further reducing the tax liability of the company believing her to be an
accountant. Meanwhile, Jenny took advantage of Scott’s mistaken belief and
trust and convinced him that he would reduce the company’s tax liability by
50% in exchange for a substantive number of shares in the company. Is Scott’s
donation of a substantive number of the company’s shares to Jenny valid? Why
or why not?

- No, because donations are given without return consideration And Jenny would only
reduce the company’s tax liability by 50% for the exchange of share in the company. In
their scenario there’s nothing happen in the request of Scott because Jenny is just taking
an advantage and she have some plan to Scott company. Jenny used Scott’s trust to get
what the company wanted. because jenny didn't really help Scott, she just helped with a
replacement so that she just helped him to have a place in the company.

Scott and Jenny must be capable of giving consent, which means they understand and
retain the information given by them and they can use it to make an informed decision it's
not what you're planning to do that the person you're talking to doesn't know. And you’re
using your knowledge to manipulate someone.

4. Niño is very much interested in buying Jasper’s business, but Jasper is not open
to the idea of selling his business. Since Niño is used to getting what he wants,
he threatened Jasper that he has connections with the Department of Trade and
Industry (DTI), and he can have Jasper’s business closed. Out of fear, Jasper sold
his business to Niño. What should Jasper do to get back the business? What
should be the basis of his remedy?

- Businesses issue certificates to owner, shareholders, members, or partners in order to

provide proof of ownership so Jasper should present facts or certificates such as the Bureau
of internal revenue certificate or department of trade and industry certificate or Tax returns
and the articles of organization serve as proof of business documents in proving that the
business he sold to Niño belongs to him, and explain to those in charge on Niño's threats,
and pretending that he has connections with the Department of Trade and Industry (DTI)
that’s why you sell your business because of fear.

Registering your business with the Bureau of Internal Revenue (BIR) is one of the things
that a business owner needs to do to make your business legal and to avoid the risk of
being tax evader. And in the Department of Trade and Industry (DTI) that is a prime mover
of consumer welfare. It is important to register your business either the two the BIR and
DTI to Secures your reputation as a legitimate business and having your proof that you
own that specific business.